BIRMINGHAM, AL—Masada Resource Group, LLC, the company that has a contract with the City of Middletown to design and build a waste-to-ethanol plant, Thursday renewed an offer first made in May 2006 to advance the city $3 million in annual host fees under its waste management services agreement with Middletown The offer was never acted upon by city officials in 2006.

Mayor Marlinda Duncanson said the offer would require discussion with the common council and advise of the city’s special lawyers handling the case.

“We knew when we made the offer to advance money in 2006 that the city would be in a financial crisis today due to skyrocketing increases in fuel prices and the cost of services”, said Masada CEO Donald Watkins. “We are the city’s business partner, and have real solutions to city’s pressing financial needs. Our facility is designed, permitted and ready for construction. It can provide Middletown with much needed jobs, new and growing revenue streams for the city treasury, and locally available inexpensive fuel for the city’s fleet of vehicles.” Watkins said all Middletown officials need to is “worth with us in good faith, (and) everybody involved would be better off.”

Masada and the city are currently in arbitration proceedings regarding a claim by Masada that it is entitled to an extension of its waste management contract due to the death of the company’s founder in 2005. The city is also questioning the validity of its agreement with Masada. Watkins said the legal dispute is “a complete waste of time, money and resources on both sides. “

Watkins said he predicted $4 per gallon fuel prices in 2007 and said gas prices are expected to increase to $5 per gallon by next year. “It makes no sense for the city to fight Masada’s efforts to move the Middletown waste-to-ethanol plant project forward. The best answer to rising fuel prices is the local production of more fuel, which is clearly within the city’s control,” said Watkins. “Hiring freezes and cuts in city services will not solve the city’s financial problems.”